India’s Sensex penetrated its secondary rising trendline, warning of a correction. Bearish divergence on 13-week Twiggs Money Flow continues to warn of selling pressure. Breach of support at 26000 would offer a target of 25000 and the primary trendline. Respect of support and follow-through above the descending flag would indicate an advance to 28000*.
* Target calculation: 27000 + ( 27000 – 26000 ) = 28000